(RTTNews) - Levi Strauss & Co. (LEVI) Tuesday said it agreed to buy all operating assets related to Levi's and Dockers brands from The Jeans Company, a distributor in Chile, Peru and Bolivia, for about $35 million.
The deal includes about 80 Levi's and Dockers retail stores, distribution with the region's leading multi-brand retailers, and the logistical operations in these markets.
"Over the course of our 30-year partnership, TJC has enhanced the market position of the Levi's and Dockers brands in Chile, Peru and Bolivia," said Roy Bagattini, president of the Americas region at LS&Co. "We believe the acquisition of these assets will build on the strong foundation established by TJC and will position us to accelerate growth across the Andean region."
Levis said it has stopped shipping inventory to The Jeans Company in anticipation of the transition of operations, which will have an estimated impact of around $20 million its revenues in the second half of 2019. Levis does not expect any similar negative revenue impact to fiscal 2020.
The deal is expected to close by the end of the year.
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